IIA-CIA-PART1 · Question #208
The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been…
The correct answer is D. The auditor may have formed a cultural bias, as the department under review is in the auditor's. Option D is correct because assigning the same auditor who has spent three years documenting failures in a regional department raises the concern of cultural or regional bias - the auditor may have developed entrenched assumptions or affiliations tied to that department's…
Question
The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again. What concerns should be considered prior to assigning the audit to the same auditor?
Options
- AIntimidation threats may compromise the auditor's objectivity due to multiple negative audit
- BThe auditor has reviewed the department annually for the last three years, leading to familiarity,
- CA negative cognitive bias may be in place that affects the employee's objectivity due to the recent
- DThe auditor may have formed a cultural bias, as the department under review is in the auditor's
How the community answered
(59 responses)- A14% (8)
- B3% (2)
- C7% (4)
- D76% (45)
Explanation
Option D is correct because assigning the same auditor who has spent three years documenting failures in a regional department raises the concern of cultural or regional bias - the auditor may have developed entrenched assumptions or affiliations tied to that department's regional context that persist regardless of who is managing it, undermining objectivity before the audit even begins.
Why A is wrong: Intimidation threats involve management pressuring auditors to soften findings. With new management in place, no prior adversarial dynamic exists yet - this threat hasn't had a chance to form.
Why B is wrong: Familiarity threat (being too comfortable with auditees) is a real IIA concern, but familiarity is primarily tied to relationships with people, not the department itself. New management significantly disrupts those personal relationships, making this less pressing than D.
Why C is wrong: A negative cognitive bias stemming from the recent management change frames the problem too narrowly - it implies the bias is new, whereas the deeper concern is the three-year accumulation of departmental history the auditor carries in.
Memory tip: Think of it this way - people change (new management), but place and culture persist. When the same auditor has deep roots in a regional department's context for years, bias is baked into their perspective structurally, not just interpersonally. On the exam, when you see "same auditor + same location + multiple years," look for the structural/cultural objectivity threat first.
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